HIGHLIGHTS OF THE WEEK

THE FIRST NATIONAL CITY BANK lowered its prime rate from 7¼ per cent to 7 per cent, Its lowest since May 7, 1973. A number of other leading banks reduced their prime rates to 7¼ per cent from 7½ per cent.

CORPORATE PROFITS FELL a record 22.3 per cent in the first quarter to a seasonally adjusted rate of $61.8billion, the Commerce Department reported.… The real gross national product slipped 11.3 per cent on an annual basis and the inflation rate, based on the chain price index, was 7.8 per cent in the fourth 1974 quarter, both according to revised Commerce Department figures.

W. T, GRANT LOST $53.9‐million in the quarter ended May 1 and $177.3‐million in the year ended Jan. 31 while Sears, Roebuck had a first‐quarter profit plunge of 61 per cent, as sales slumped 2 per cent.

THE CONSUMER PRICE INDEX climbed 0.6 per cent In April reflecting a rise in food costs. it was the largest jump in three months, according to the Labor Department. …The Commerce Department reported that new orders for durable goods last month showed the sharpest gain since 1967, flashing the strongest signal to date that the recession may be at or near bottom.… The dollar sank in Europe as gold rose to a two‐year high.

OPERATIONS WILL RESUME next week at every auto plant operated by the nation's four auto companies, although 162,625 of the Industry's 712,000‐person workforce remain on open‐ended layoffs. … The annual auto sales rate increased slightly in late May to about 6.2 million.

THE LARGEST ANTITRUST CASE IN HISTORY went to trial, with the Justice Department charging the International Business Machines Corporation with deliberately monopolizing the general purpose computer industry and asking that I.B.M. be broken up into “several discrete, separate, independent and competitively balanced entities.” I.B.M. in its opening statement said it had no monopoly power.

NEW YORK CITY'S FINANCIAL CONDITION worsened when three large banks and an investment concern declined to buy $280‐million in bond notes offered without bidding. The banks were Morgan Guaranty Trust, First National City and Chase Manhattan; Salomon Brothers was the investment concern.… Leaders of major municipal unions refused Mayor Beame's request to reopen current labor contracts, accept a four‐day work week and forego a 6 per cent raise scheduled for July 1.… New York State will auction $975‐million of short‐term notes next week, none of it to go to the city.… Consolidated Edison, the city's largest taxpayer, said its earnings were 0expected to Improve this year.

RESIGNATIONS: John W. Rutledge resigned as president of the Bulova Watch Company. The company said that Harry B. Henshel, chairman, will assume the duties Mr. Rutledge until a successor is named. … James A. Ryder, founder of Ryder System, Inc., plans to resign as president and chief executive officer by Sept. 1, but will continue as chairman. The company said it was seeking a president.

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